Collaboration in Construction Projects WHY AND HOW? Tuesday 23rd February 2016 COLLABORATION The Constructing Excellence Model
PAUL GREENWOOD Greenwood Consultants Limited Constructing Excellence Collaborative Working Champions Group
@constructingexc Eur Ing Paul Greenwood EMBA CEng MIET FCMI FCQI MICW ISO 11000 Managing Director PC286 Greenwood Consultants Limited GreenwoodConsultants.com @GreenwoodCLtd Member, Constructing Excellence Collaborative Working Champions Group
@constructingexc Agenda
Constructing Excellence The Organisation and the Movement Background and Activities Drivers for Change Collaborative Working Three Overriding Principles Six Critical Success Factors The Move to Collaborative/Relational Models Q+A
@constructingexc Constructing Excellence
@constructingexc The Organisation
The single organisation driving change in UK construction
The platform for industry improvement to deliver better value for clients, industry and users through collaborative working
“BETTER TOGETHER”
@constructingexc The Movement
84 national members, 9 regional Centres 35 local best practice Clubs, 718 G4C members, 10 partners in the CE International Alliance
@constructingexc Brought together by the UK Government - funding is now from industry
Industry membership
Government Commercial programmes income
@constructingexc Six Core Activities - to support continual improvement
Action research & innovation
Leadership & Demonstrations influence
Core activities
Learning KPIs & events benchmarking & training
Guidance & tools
@constructingexc Current Theme Groups
G4C
Asset Funding Management & Finance Collaborative Working Nuclear Champions BIM
Client Health Sustainability & Safety
@constructingexc National Corporate Membership The home for intelligent informed clients who are at the heart of CE
@constructingexc National Members
Clients Royal Mail Group Consultants Manufacturers & Suppliers BAE Systems Sandwell MBC Advance 4Projects BBC SCAPE Aecom/Davis Langdon Astins Birmingham City Council Scottish Water Capita Symonds Coubari Crossrail Westfield Group CH2M Hill Graphisoft East Riding of Yorks Council Worthing Homes Coaction Management Knauf Drywall EDF Energy (NNB) Yorkshire Water CWC Management Process Systems Environment Agency DBD Polypipe Terrain Heathrow Airport FaulknerBrowns Structural Timber Association Contractors Highways Agency Greenwood Consultants Tekla Balfour Beatty Igloo Regeneration Invennt Waterloo Air Products Bowmer & Kirkland Imperial College LCMB Cara Lambeth Living Room4 Consulting Associates Dawnus London Underground Synaps BRE Higgins Magnox Thurlow Associates British Property Federation Interserve Nationwide Building Society Trowers & Hamlin Chartered Institute of Building ITC Concepts Northumbrian Water Turner & Townsend Glenigan Keltbray NuGen Waterman Institute of Collaborative Working Kier ProCure 21 Wragge UK Green Building Council Mace Quintain University of Reading McGee Rochdale Boroughwide Morrison Galliford Try Skanska Willmott Dixon
@constructingexc Influencing the Mega Projects of Today to Improve the Industry of Tomorrow - and setting the bar ever higher for the next one
HS2 Nuclear Crossrail power stations London T5 2012 Heathrow Olympics
@constructingexc Drivers for Improvement - charted by key reports
Latham .Egan Olympics .’Crisis’ .. ’2025’
1994...... 1998...... 2006 ....2010 ..2013
@constructingexc Rethinking Construction, 1998
5 Key drivers for change 4 Key project processes 7 Targets for improvement
Committed leadership Capital cost -10% Partnering Product Construction time the -10% Focus on the customer development supply chain Predictability +20% Product Team Integration Defects -20% Accidents -20% Quality driven agenda Project Production of implementation components Productivity +10% Commitment to people Turnover & profits +10%
@constructingexc Egan Inspired the Construction Industry Key Performance Indicators
Safety Client satisfaction Predictability • Product • Cost • Service • Time Environmental impact Defects • Product • Service Construction Cost Product Construction Time Process Profitability Employee satisfaction Productivity Staff turnover Qualifications & skills
@constructingexc Annual Industry Performance Report
Economic KPIs Respect for People KPIs Environment KPIs - All Construction - All Housing - All Non-Housing - Construction Consultants
@constructingexc Client Satisfaction with Product and Service
@constructingexc Cost and Time Predictability
@constructingexc The Industry has Improved its Safety
@constructingexc Over 500 Demonstration Projects since 1998 - all sectors, regions and sizes
£15bn project value 500 complete, c25 live 1500 organisations involved UK-wide 200 case histories 80 associated reports and publications
@constructingexc “Completed 61 weeks ahead of schedule”
“Saved over £1.4 million on whole life cost forecast “
“Vehicle movements cut dramatically reducing carbon emissions by 85%”
“Level of recycled elements within the finished product, measured at 89%”
“Project completed £112k under budget”
“No reportable accidents”
“Reduced traffic management by around 6 months leading to huge cost/time savings”
“The project has saved 44% on actual costs compared to the target budget which equates to £500,000”
“The Bypass opened 16 weeks ahead of schedule and within budget”
“50k tonnes of waste diverted from landfill” @constructingexc “99.6% of demolition waste recycled” Over 500 demonstration projects which out performed the rest of the industry
770 350 2006 pan industry performance = 100 300
250
200
150
100
50
0
@constructingexc Government Industry Joint Construction Strategy ‘Construction 2025’, 2013
People Smart Sustainable Growth Leadership
@constructingexc Vision 2025
Relational
Collaborative
Transactional
P G15ageCBD-CEKC005 July 24 2015 @constructingexc Customers’ View of Procurement High • Ensure supply • Ensure supply • Manage risk • Cost insensitive + value • Continual review Risk • Automate • Seek • Delegate opportunities • Give low • Take risks attention • Drive low costs Low High Value (£)
@constructingexc Suppliers’ View of Procurement High • Nurture client • Cosset client • Seek • Defend vigorous opportunities • Exceed • Expand expectations
• Drive premium • Low attention • Seek sht-term Attractiveness • Loose advantage - without pain • Risk loosing Low High Income (£)
@constructingexc CustomerS’ and Suppliers’ View Ensure supply Manage risk + value
High Maintain continual review Strategic Strategic critical Cosset client security COLLABORATEDefend vigorously Exceed expectations
Tactical Tactical acquisition value/income Risk/Attractiveness
Low High Value/Income (£)
@constructingexc Partnered Relationship Styles
High Co-creating Strategic Relationships/ Value Collaborative Alliances Created Strategic Partnerships Cooperative Operational Confrontational Compliant Partnerships Low High Mutual Trust
@constructingexc Collaborative Working
@constructingexc Three Overriding Principles
Common vision and leadership
Culture and Processes behaviours and tools
@constructingexc Six Critical Success Factors
Early Involvement Selection Long-term by Relationships Long-Term Value Collaborative Working Aligned Performance Commercial Measurement Arrangements Common Processes and Tools
GCT50-000 1 February Page 31 @constructingexc Rev D9 2016 Six Common Failures
DelayedEarly Involvement Selection Short-Term Selection Long-term by Project by Lowest Relationships Long-Term Relationships Tender Cost Value CollaborativeTraditional Working IndividualAligned CostPerformance and Time Commercial Measurement Arrangements CommonSiloed Processes and Tools
@constructingexc Early Involvement
@constructingexc Selection by Value - we need to understand how clients and users measure it (£, happy residents, CO2, time, social value, etc)
Benefit Value = ______WHOLE Cost LIFE
@constructingexc The value of client outcomes far outweighs the project costs
Operation and Maintenance Business Costs Outcomes Construction “£1M”“£5M” “£200M” “£250-£2000M”? Design £100k
Process Push
User Pull
@constructingexc Clients’ Drivers Procuring for Value
Safety – Pressure More Legislation and health to open on Growth Regulation for less & welfare time
Delivering Budget Environmental “Future BIM in ‘live’ cuts sustainability proofing” “Level 2” facilities
SMEs and Collab Places, Funding & Capex vs Social Local jobs orative quality of Finance Opex Value working life
@constructingexc Aligned Commercial Arrangements
Objectives Policies, Strategies and Plans
Contract Processes, Systems and Performance Measures
@constructingexc Common Processes and Tools
Partner 1 Joint Partner 2 Partner 1 Partner 2 Risks Risks Risks
Project Strategic Board (Core Group )
Project Operational Team (Partnering Team)
Mgt Systems Communications KnowledgeWorking Mgt Group CommercialWorking Group Supply-ChainWorking Group RiskWorking Mgt Group OperationsWorking Group IssueWorking Resolution Group PerformanceWorking ImpGroup Bus’Working Process Group Joint Working Group Working Group Risk Treatment
@constructingexc Performance Measurement and Improvement
Improvement Start Team
Collaborative Review Rank and N Authorise? Objectives Opportunities Prioritise Y Innovations Performance Business Improvement Register Report Case Plan
Performance Operations Implement Meas’ System Process Improvement Ideas Benchmarking Mgt System Forum
@constructingexc Performance Measurement and Improvement
@constructingexc Long Term Relationships
@constructingexc Achieving Vision 2025
⇒ Respect for people ⇒ Collaborative working ⇒ BIM ⇒ Lean & Industrialisation ⇒ Value in use ⇒ Sustainability
@constructingexc Major Infra Procurers Move to Collaborative/Relational Models
GCBD-CEKC005 15 July 2015 Page 43 @constructingexc Questions & Answers
@constructingexc